Business intelligence refers to the systematic collection, analysis and presentation of business data to optimize decision-making processes. It is a holistic approach that combines technologies, applications and methods to transform company data into usable insights. Further information on the basic definition of business intelligence can be found here. Modern business intelligence goes far beyond mere reporting. It enables companies to identify trends at an early stage, minimize risks and proactively exploit opportunities. By integrating various data sources and advanced analytical methods, companies can now make more precise predictions and adapt their strategies accordingly.
One particularly important aspect is the democratization of data within the organization. Modern BI solutions enable employees without in-depth technical knowledge to gain and utilize data-based insights.
The BI lifecycle consists of several phases that build on each other and enable a continuous improvement process.
The basis of every BI solution is the systematic collection of relevant data from various sources. These can be internal (such as ERP systems or CRM databases) or external (such as market research data or social media analyses). The biggest challenge is to standardize these heterogeneous data sources and bring them together in a consistent structure.
An increasingly important aspect is the use of external data sources to analyse the market and competition. Methods of automated data collection and processing help companies to efficiently analyse relevant information and incorporate it into their strategic decisions.
After collection, the data must be cleansed and standardized. This process includes the elimination of duplicates, the correction of errors and transformation into a standardized format. The quality of the subsequent analyses depends largely on the care taken in this phase.
Various analysis methods are used in this phase:
By using modern AI-supported analysis methods, companies can identify market trends at an early stage and make well-founded strategic decisions.
Business intelligence is used in almost all areas of a company. Here are some of the most important areas of application:
The targeted use of business intelligence offers considerable advantages, particularly when it comes to analysing the market and competition. Automated processes for collecting and analysing external data enable companies to make strategic decisions on a broader information basis.
The business intelligence industry is constantly evolving. According to a study by Straits Research, the global BI market will reach a volume of over 40 billion US dollars by 2030. The following developments are particularly exciting:
AI technologies are significantly expanding the possibilities of BI systems. Machine learning algorithms can recognize patterns that are not obvious to humans and automatically generate recommendations for action.
This new generation of BI tools uses AI and natural language processing to make data analysis even more accessible. Users can ask their questions in natural language and receive automatically generated insights.
Business intelligence has evolved from a pure reporting tool to a strategic asset that helps companies remain competitive in the digital age. The key to success lies in the right combination of technology, processes and people.
A step-by-step approach is recommended for companies that want to develop or optimize their BI strategy: